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The purpose of this paper is to explore the impact of perceived risk on the procedural rationality of the decision process rather than decision choices or outcomes. The moderating roles of attainment discrepancy and organizational slack are also explored.

These relationships, motivated by behavioral theory, are tested using survey data of capital investment decisions in a sample of 128 public firms in the USA.

The findings suggest an inverted‐U shaped relationship between perceived risk and procedural rationality. In addition, absorbed slack and attainment discrepancy played moderating roles on the perceived risk‐procedural rationality relationship.

This study has several implications for research. First, the influence of risk is extended beyond decision outcomes to include decision processes. Second, the core arguments of behavioral theory, including uncertainty avoidance and decision context, appear to hold for the decision process. However, the effects of risk appear to be in the form of an inverted U‐shaped relationship, differing from prior behavioral theory research related to decision outcomes.

Perceived risk and the organizational context can lead to differing approaches to making decisions. As perceived risk increases, managers appear to alter the extent of information gathering and analysis. Organizations may consider designing different decision processes for different situations that take these managerial tendencies into account.

The contribution of this study is the extension of behavioral theory explanations of risk from decision choices or outcomes to the procedural rationality of the decision process. The findings show that risk has a non‐linear influence on the procedural rationality of the decision process.

This study focuses on how the creation of a new market identity, defined here by the social categories that specify what to expect of products and organizations, helps legitimize normatively illegitimate products and thereby facilitate the formation of markets for these products. A product is given a legitimate market identity by recombining existing product and status categories in a way that is both isomorphic with and differentiated from these preexisting categories. I argue that the creation of a new market identity helped create a market for feature films that combined legitimate comedy and illegitimate pornography following the legalization of pornography in Denmark in 1969. Topological analyses of the cultural content of all the film posters used to promote Danish films between 1970 and 1978, and regression analyses of the status of the actors appearing in these films document the importance of market identity in legitimizing illegitimacy.

This chapter demonstrates (1) divergence between spending based upon a budget ratcheting model and a benchmark spending model, (2) that this divergence affects organizational performance, and (3) that internal benchmarking enables unit-to-unit performance comparisons, despite claims of organizational or unit uniqueness. We contrast two spending models to examine whether the divergence, or cost estimation gap, affects operating performance across inpatient (n=4,536) and outpatient departments (n=8,438) in 23 U.S. Army hospitals. Using a fixed-effects panel data methodology for fiscal years 2004–2006, we find that unit managers’ spending in this setting is more closely approximated by budget ratcheting. Using multiple performance metrics measured via a DuPont-like decomposition, we find that, within a specified range, operating performance generally improves as resources become constrained. Outside that range, however, we find nonlinear performance effects that approximate a quadratic loss function. Our benchmark model enables clinical department comparisons while controlling for facility, clinical specialty, and case mix severity. The resulting departmental comparability facilitates identification and communication of best practices across the entire Army hospital system. These results should be of interest to corporate executives, government officials, and agency managers who have responsibility for establishing funding mechanisms that include performance-based components.

The purpose of this study is to develop a better understanding of how relational embeddedness offers marketing channel partners both benefits and hazards. The nonlinear effect of relational embeddedness on channel opportunism is investigated. Influence strategies (i.e. coercive and noncoercive influence) are also examined as mediators of this nonlinear effect.

Survey data are gathered from a sample of 149 manufacturers in China. The hypotheses are tested through regression analysis.

The results support the hypothesis that relational embeddedness has a U-shaped effect on opportunism, and that this relationship can be mediated through noncoercive influence strategies. The results also indicate that coercive influence has an inverted U-shaped effect and noncoercive influence has a U-shaped effect on opportunism.

This research serves as a launching point for further investigations into the “black box” of the double-edged effects of relational embeddedness. Other channel behavior constructs can be explored in future studies.

Firms should be aware of the benefits and pitfalls associated with relational embeddedness in marketing channels. They should be alert to using influence strategies when managing channel opportunism.

This study addresses the dilemma of embeddedness in marketing channel relationships and reveals its causes and mechanisms by exploring the mediating effects of influence strategies.

We examined the effects of group structure and electronic communication patterns on the performance of 18 multinational teams over an 8-month period. The teams were composed of a mix of Western and non-Western executives located throughout the world. In these highly diverse teams, team performance did not vary as a function of demographic heterogeneity; however, demographic homogeneity within the teams’ subgroups negatively affected team performance. The following communication patterns were associated with better team performance: a hierarchical communication structure, expressions of trust in the team's competence, references to the self, and information-providing statements.

The paper aims to investigate factors that drive the total factor productivity (TFP) and its growth in the Czech food industry over 2003–2017. The authors’ analysis focuses on firm-level characteristics such as location choice, sub-sector affiliation, use of debt, liquidity, asset turnover, firm size and firm age.

The determinants of productivity were tested econometrically by estimation of multivariate regression models. The firm-level panel data set consisted of 14,488 observations (data of 980 firms spanning 15 years). TFP was estimated by three regression-based techniques – ordinary least squares (OLS) regression, instrumental variables (IV) approach and two-way generalized method of moments (GMM) regression. All three measures of TFP were used as outcome variables to estimate the impact of firm-level determinants on both TFP level and growth.

The results have shown statistically significant and reversed U-shaped relationship between the firm age and the TFP level (with a turning point in the age of 12.5 years). However, the dynamic models investigating the TFP growth have found that younger firms achieve higher productivity growth in comparison with older ones. Higher market share and assets turnover were positively associated with both TFP level and its growth.

This study brings several relevant propositions for future research. First, the authors recommend future researchers to study not only differences in the levels of productivity but also determinants of its growth. Second, the authors believe that adding a non-linear component to age as a factor explaining changes in the levels of productivity might be a very relevant contribution to the literature.

Although it is generally accepted that successful and sustainable growth of firms, regions and economies can be achieved particularly through viable companies with high productivity, there is still a limited number of firm-level studies explaining the determinants of productivity levels and growth in agribusiness sectors in transition economies. Therefore, this study is expected to contribute to a better understanding of this important topic.

An unconscious concern regarding one’s inevitable death, known as mortality salience, may affect consumers’ brand choices in the aftermath of disastrous events, such as earthquakes. The purpose of this paper is to examine the role of self-identification with global consumer culture (IDGCC) in global brand purchase intention in response to disasters that heighten mortality salience. The roles of materialism, consumer ethnocentrism, cosmopolitanism and hope in this this process are also explored.

An online experiment was conducted with a large sample of Japanese consumers. Japan was selected because it had recently suffered from a series of devastating earthquakes. Participants’ mortality salience was primed with an earthquake scenario. All measures were adapted from prior research. The authors used structural equation modeling to test the hypotheses and validate the model.

The results reveal that IDGCC is a direct predictor of global brand purchase intention when mortality salience is high. It appears that identifying with global consumer culture and buying global brands enhances self-esteem and reduces anxiety for those with high IDGCC. As predicted, materialism and cosmopolitanism positively influence IDGCC, whereas consumer ethnocentrism does not impede IDGCC. Hope directly and positively affects global brand purchase intention.

Some consumers who experience traumatic events may resist mortality salience and experience a heightened sense of global citizenship. Meanwhile, those with lower IDGCC may revert to in-group favoritism, whereas those with higher IDGCC tend to purchase global brands. Using a scenario to simulate the mental state evoked by a disaster limits generalizability.

The findings illuminate how firms should modify their international marketing strategies in the face of traumatic global events when targeting consumers with high vs low IDGCC in terms of framing messages about global brands. Additionally, using global brands that emphasize an optimistic outlook may help global marketers capture attention from consumers high in IDGCC.

This study is one of the first to address traumatic events and hope, relating these concepts to IDGCC and global brand purchase intention in an international marketing context.

The past decade has seen substantial changes in how organizational leaders work with external stakeholders to improve innovation performance. As leaders have encouraged the extensive involvement of suppliers and customers into the innovation process this has led to the formation of supplier innovation triads that are often governed by a portfolio of strategic alliances. The purpose of this paper is to explore how leaders’ inter-firm relationships and strategic alliances influence the development of supplier innovation triads.

The sample of firms in the Toyota supplier association is constructed from multiple data sets, including the Japan Patent Office, BoardEx and S&PCapitalIQ. The authors test the hypotheses using multivariate techniques, moderation analysis and endogeneity tests.

The results indicate that leadership relationships to Toyota and its suppliers have a positive effect on the formation of supplier innovation triads. The authors find that firm–external leadership relationships and alliance partner diversity have differential moderating effects on how customer and supplier leadership relationships could be used to build supplier innovation triads.

The results focus on the firms within the Toyota supplier association, and this limits the paper’s generalizability. Although patent data provide a detailed information resource, it do not capture all collaborations.

The authors expand the leadership literature by undertaking one of the first studies of inter-firm leadership relationships and their differential effects on innovation triads. The authors contribute to the literature by exploring the antecedents and moderating factors that influence buyer–supplier–supplier triads within an innovation setting.

This paper aims to investigate consumer behaviour in response to social norms under pay-what-you-want (PWYW) pricing. Specifically, it explores the critical role of social norms such as norm priming and consumer prior trust in the retailer on consumers’ perceived price fairness, trust, willingness to pay, purchase intentions and intentions to spread negative word of mouth about the retailer.

Data on dependent measures were collected through the scenario-based online experimental approach and assessed using MANOVA analysis.

Results confirm the significance of norms by indicating the critical role of norm belief on consumer responses. Also, increasing the salience of norms by priming them usually intensifies negative behaviour, and pre-existing trust in the retailer serves as an imperfect cushion against consumer negative reactions to norm violation, but this effect is observed to be decreasing with increase in prior trust.

Further research should consider the contextual (time, place, media) influences and assumptions to increase the generalizability of the findings.

To the best of the authors’ knowledge, this is the first paper to explicitly examine the effects of social-norm compliance by sellers on consumer behaviour in the context of PWYW pricing.

Drawing on the challenge–hindrance stressor framework and the “too-much-of-a-good-thing” principle, this study examined the curvilinear effects of two emic social challenge stressors (guanxi beliefs and participative decision-making (PDM)) and the moderating effect of an etic social hindrance stressor (perceived organizational politics) on Hong Kong and United States nurses’ job satisfaction.

A quantitative survey method was implemented, with the data provided by 355 Hong Kong nurses and 116 United States nurses. Structural equation modeling was used to examine the degree of measurement equivalence across Hong Kong and US nurses. The proposed model and the research questions were tested using nonlinear structural equation modeling analyses.

The results show that while guanxi beliefs only showed an inverted U-shaped relation on Hong Kong nurses’ job satisfaction, PDM had an inverted U-shaped relation with both Hong Kong and United States nurses’ job satisfaction. The authors also found that Hong Kong nurses experienced the highest job satisfaction when their guanxi beliefs and perceived organization politics were both high.

The results add to the comprehension of the nuances of the often-held assumption of linearity in organizational sciences and support the speculation of social stressors-outcomes linkages.

Managers need to recognize that while the nurturing and development of effective relationships with employees via social interaction are important, managers also need to be aware that too much guanxi and PDM may lead employees to feel overwhelmed with expectations of reciprocity and reconciliation to such an extent that they suffer adverse outcomes and become dissatisfied with their jobs.

First, the authors found that influences of guanxi beliefs and PDM are not purely linear and that previous research may have neglected the curvilinear nature of their influences on job satisfaction. Second, the authors echo researchers’ call to consider an organization’s political context to fully understand employees’ attitudes and reactions toward social interactions at work. Third, the authors examine boundary conditions of curvilinear relationships to understand the delicate dynamics.